TENANT ELIGIBILITY POLICY

PREAMBLE
The Department of Housing and Works has strict eligibility criteria for all applicants for public rental housing. These are based on an applicant’s income, assets (property/land and cash assets), citizenship and residency status, age, and family size and subject to proof of identity. (See ELIGIBILITY POLICY).

An eligibility check is undertaken at application and at allocation, to ensure only eligible persons occupy public housing. While not all applicant criteria will be applicable to tenants, criteria relating to income, cash assets, ownership of property and land and family size/number of bedrooms continue to apply. Therefore, after occupation, the Department of Housing and Works reviews ALL tenancies on an annual basis, to ensure continuing eligibility. The Department of Housing and Works takes the view that where a tenant’s circumstances have changed and they no longer have a need for public housing or the number of bedrooms allocated at occupation, the right is reserved to take action to ensure public housing is utilised for those in greatest need.

Tenancy agreements signed since 1996
Since 1996, the Department of Housing and Works Tenancy Agreement has included a clause relating to continuing eligibility of tenants. This states:

A tenant must during the period of tenancy remain eligible for assistance as determined by The Department of Housing and Works from time to time.

Therefore, tenants who become ineligible after occupation are in breach of their tenancy.

Tenancy agreements signed prior to 1996
For those tenants, who have signed a tenancy agreement prior to 1996, and have since become ineligible due to income, cash assets, ownership of property and land or family size/number of bedrooms, the Department of Housing and Works will negotiate a time frame with the tenant to move out. This is so the housing can be available for allocation to eligible applicants. As part of the negotiation process the Department will provide the tenant with information about housing alternatives including but not limited to home ownership options, private rental assistance and details of local providers of financial counselling.

Income eligibility
Income eligibility for the Department of Housing and Works rental accommodation must be demonstrated and proven at the time of:
(1) Application for rental assistance
(2) Allocation of a property
(3) For the purpose of calculating and providing a rental subsidy and
(4) Annually, for the purpose of proving ongoing eligibility for public rental housing.

Applicants and tenants must also immediately declare to the Department of Housing and Works any change in their financial circumstances as they occur. In such situations an applicant or tenant must disclose and provide details of all sources of wage or salary income, statutory income, assets, shares or bonds, chattels, real property, assets held in corporate trust, inheritances, family trusts and any other income sources to which they are beneficially entitled. Failure to disclose all sources of income will result in the withdrawal of an application/allocation and recovery action in the case of an existing tenant.

Applicants or tenants who are unsure of what they are required to declare should discuss the matter with a Department of Housing and Works Regional Officer.

Tenants who become ineligible since signing the tenancy agreement.
All tenants in occupation who become ineligible for continued public rental housing assistance will be offered the options of:
• Purchase of their rental dwelling or similar at market value
• Relocating to the private rental market.

The Department of Housing and Works will only allow a period of 6 months (except tenants residing above the 26th parallel of the State- see below) from the date ineligibility is established for the tenant to comply with either option. Should a tenant not pursue these options, the Department of Housing and Works will seek vacant possession of the premises at the expiry of the 6-month period under s 64 of the Residential Tenancies Act (RTA) for pre ’96 tenancies and under s 62 of the RTA for post ’96 tenancies.

Where difficulties are experienced in arranging either option the Regional Manager may make a discretionary decision. See also RENT TO INCOME POLICY and ELIGIBILITY POLICY. See also FRAUD MANAGEMENT POLICY

Income ineligible tenants residing above the 26th parallel of the State or remote locations

 Tenants in this category must comply with the options of either purchasing their rental dwelling or relocating into the private market (as stated above) within two years rather than six months as for all other tenants.

The Regional Manager will refer the tenant to a committee comprising the Regional Manager, Accommodation Manager and General Manager, Housing Management Services. The committee will case manage the tenant to ensure the tenant moves into either home ownership or private rental accommodation. The committee may extend the two-year period if the tenant experiences building delays or has difficulties obtaining private rental accommodation.

If a remote location has limited alternative accommodation or such accommodation is cost prohibitive the Regional Manager will refer the tenants file to the General Manager, Housing Management Services who will make a decision under the discretionary decision making policy to permit the tenant to remain in the property despite being income ineligible. Tenants who remain will be subject to an annual rent review and pay market rent for the property.


POLICY

GUIDELINES & PRACTICES
37. Tenants must remain eligible for assistance during their tenancy.
37.1 Tenants must
  • Not acquire property or land
  • Not acquire cash assets in excess of $33,400 (single) or $55,800 couple AND
  • Remain eligible for the number of bedrooms allocated
37.2 Exception for income ineligible tenants at Brownlie Towers and Wandana Flats
•  Residents of the above complexes who are income ineligible, and who still wish to continue living in the complex after refurbishment ( as part of the 2005/06 refurbishment programs), will be offered a fixed term lease.
•  The fixed term lease will initially be offered for a five-year term after which it will be reviewed.
•  If a tenant, on a fixed term lease in the above situation, has a change of circumstances and again becomes eligible then a standard tenancy arrangement will be offered.
38. Homeswest will negotiate an arrangement to move out of the property with tenants who have signed a pre 1996 tenancy agreement.
38.1 For example, the offer of homeownership if cash assets are involved. Where under occupancy is a factor, the tenant may be offered a transfer to an area of choice.


POLICY

GUIDELINES & PRACTICES
39. Tenants with property or land will be required to pay an Individual Property Market Rent for the property. Tenants who already pay a market rent, will be required to pay the current private market rent for the property.
39.1 Homeswest will give 60 days notice of an increase in rent, as required by the Residential Tenancies Act.
39.2 Both will be backdated to the purchase of the property.
40. Tenants who have signed the 1996 tenancy agreement will be in breach of tenancy and may be required to move out.
40.1 Under S 62 of the RTA
40.2 If the ineligibility is due to acquisition of cash assets, whether the tenant is required to move out will be dependent upon the amount of money. The guiding factor in making this assessment will be, whether the money is sufficient to house themselves and any special needs.
40.3 Where the tenant owns property or land, they will be required to either sell the property or to move out of their tenancy. A reasonable time frame will be negotiated with the tenant to facilitate either option. The sale price of any property must not be unreasonable.
40.4 Where the tenant is under occupying accommodation for which there is demand, they may be required to transfer to alternate accommodation for which they are eligible.
The 1996 Tenancy Agreement states
A maximum and minimum of people may reside at the premises.
(This is defined in the agreement)
40.5 Where the ineligibility is due to increased income, much will depend upon the stability of the income. Where the position is not a permanent or on going, the situation will be reviewed again in 12 months.
40.6 In all situations, discretion and sensitivity will be exercised where the tenant has special needs or a move would cause undue hardship.



POLICY

GUIDELINES & PRACTICES
41. Tenants who have given false or misleading information on an Application or rental subsidy form, will be subject to the same action as tenants who are no longer eligible, depending upon the tenancy agreement signed. Homeswest also reserves the right to take criminal action in such cases.
41.1 On the 1996 Tenancy Agreement, the following clauses are applicable.
Upon application to Homeswest for housing assistance, the tenant must answer all questions truthfully and disclose all income and assets.
Upon review of the of the tenant’s income by Homeswest for the purpose of determining eligibility for assistance, the tenant must answer all questions truthfully and disclose any increase or the existence of additional assets.

Centrelink Verification of Income via the Income Confirmation Scheme (ICS)

42. The ICS allows for the electronic exchange of income details for tenants receiving Centrelink benefits. Tenant/s and household members must complete Income Confirmation Service Consent Authority forms to participate in ICS.

  • Tenants in occupation prior to February 2003 and whose rent was deducted from their Centrelink benefit were advised of the scheme by mail in February 2003. These tenants had the option of completing the cancellation form and returning it to the Department. Where no cancellation form was received by the Department no written confirmation is required on file.
  • Tenant/s and or household members have the right not to participate or withdraw from the ICS at anytime by completing the Cancellation from Income Confirmation Service form.
 42.1 Tenant/s and household members who agree to participate in ICS for rental assessment purposes have their income details provided to Homeswest on an annual basis.
42.2 Tenant/s whose household structure or income changes at any time will still be required to advise Homeswest and complete Rental Subsidy form and return it to Homeswest. Homeswest will then send a request electronically to Centrelink for new income details. Homeswest will advise the tenant of any changes in their rent in writing.
42.3 Tenant/s and or household members whose income is wages/ salary or have a mixture of income i.e. Centrelink and wages will still need to complete a rental subsidy form and return to Homeswest.
42.4 Tenant/s and/or household members who don’t participate in ICS will be responsible for obtaining their own income details from Centrelink and completing the relevant Rental Subsidy form and returning it to Homeswest. Tenants can elect to participate in ICS by completing the Consent Authority form at any time.



POLICY

GUIDELINES & PRACTICES

42.5 At annual inspection time the tenant will sign a copy of the household details as per the Income Subsidy screen which will confirm all members of the household and income details are correct. If the details provided by Centrelink are incorrect the tenant should advise their Accommodation Manager of the error and new income details obtained from Centrelink. The tenants endorsed Income Subsidy should be placed on the Tenant’s Personal file. The tenant will be provided with a copy of this document during their annual inspection.
42.6 New tenants will be given the option to participate in the scheme at sign up. Details of ICS and the consent form will be provided with details of the scheme including information that they can withdraw from the scheme by completing the cancellation form at any time.